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QUESTION 5 5 points Table 4 shows the credit creation information after an open market purchase of securities from Bank A by the Reserve Bank

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QUESTION 5 5 points Table 4 shows the credit creation information after an open market purchase of securities from Bank A by the Reserve Bank of Australia (RBA). Assume that banks are able to loan all funds. Table 4. Credit creation Round Bank Deposit Reserve Loan A $10,000 X $9,000 N B $9,000 $900 y Using the data from Table 4, (a) Work out the values of x and y in Table 4. (b) Calculate the reserve ratio and the money multiplier (c) Given the money multiplier from part (b), what is the total amount of money that can be created (including the initial RBA deposit) from the initial RBA deposit? (d) If the RBA increases the reserve ratio, what happens to the total amount of money that could have been created? Explain

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